Brand Report

3.  The company produces and markets aThe company produces and markets a
varied range of higher end sporty cars andvaried range of higher end sporty cars and
motorcyclesmotorcycles
 It also operates an aircraft engine divisionIt also operates an aircraft engine division
under the brand name of Rolls Royce.under the brand name of Rolls Royce.
““We define what premium means today.We define what premium means today.
And we will also define the future ofAnd we will also define the future of
premium mobility”premium mobility”

4. Bavarian Flag
1923
2000’s

5. History
After World War I, BMW was forced to
cease aircraft (engine) production by
the terms of the Versailes Armistice
Treaty.
The company shifted to
motorcycle production in 1923
once the restrictions of the treaty
started to be lifted, followed by
automobiles in 1928–29.

6. By 1959 the automotive division of BMW was in financial
difficulties and a shareholders meeting was held to
decide whether to go into liquidation or find a way of
carrying on
It was decided to carry on and to
try to cash in on the current
economy car boom enjoyed so
successfully by some of
Germany's ex-aircraft
manufacturers such as
Messerschmitt and Heinkel.

7. In 1992, BMW acquired a
large stake in California
based Industrial design
studio DesignworksUSA,
which they fully acquired in
1995. In 1994, BMW bought
the British ROVER GROUP
By 2000, Rover was making huge losses
BMW decided to sell the combine.
The MG and Rover brands were sold to the
Phoenix Consortium to form MG Rover, while
Land Rover was taken over by Ford.
BMW, meanwhile, retained the rights to
build the new MINI, which was launched in
2001

8.  FoundedFounded 21 July 191721 July 1917
 FounderFounder Franz Josef PoppFranz Josef Popp
 HeadquartersHeadquarters Munich, GermanyMunich, Germany
 CEO Dr. Norbert Reithofer.CEO Dr. Norbert Reithofer.

9. About Manufacturing:About Manufacturing:
 We sell our vehicles in 140 countries.We sell our vehicles in 140 countries.
 We produce them at 25 locations in 14We produce them at 25 locations in 14
different countries.different countries.
Europe is the largest sales market for ourEurope is the largest sales market for our
company.company.

10. Plants of BMWPlants of BMW
Munich PlantMunich Plant
Making the Z8Making the Z8
BMW’s original plant is also based in MunichBMW’s original plant is also based in Munich
Dingolfing PlantDingolfing Plant
More than 1,200 cars leave the plant every dayMore than 1,200 cars leave the plant every day
Largest car production plant within the BMW GroupLargest car production plant within the BMW Group
Production of the most outstanding cars in small, exclusive series-Production of the most outstanding cars in small, exclusive series-
BMW M5BMW M5
Regensburg PlantRegensburg Plant
Builds approximately 220,000 3 Series each year.Builds approximately 220,000 3 Series each year.
Delivers body components for the 3 Series to BMW’s other carDelivers body components for the 3 Series to BMW’s other car
production plantsproduction plants

11.  Landshut PlantLandshut Plant
 Lightweight automotive construction and the production of carLightweight automotive construction and the production of car
componentscomponents
 Wackersdorf Innovation PartWackersdorf Innovation Part
 Acting as an internal supplier together with 11 external suppliers.Acting as an internal supplier together with 11 external suppliers.
 Eisenach PlantEisenach Plant
 Famous for its great tradition in the world of German automobilesFamous for its great tradition in the world of German automobiles
 Leipzig/Halle PlantLeipzig/Halle Plant
 Build approximately 155,000 BMWs a year after the initial ramp-up phaseBuild approximately 155,000 BMWs a year after the initial ramp-up phase
 Berlin PlantBerlin Plant
 Only motorcycle plant in the world, associates build the entire range ofOnly motorcycle plant in the world, associates build the entire range of
BMW motorcycles for the market.BMW motorcycles for the market.

12.  Steyr PlanSteyr Plan
 Responsible for the production of four- and six-cylinder dieselResponsible for the production of four- and six-cylinder diesel
and gasoline engineand gasoline engine
 Hams Hall PlantHams Hall Plant
 Builds gasoline engines between 1.6 and 2.0 litersBuilds gasoline engines between 1.6 and 2.0 liters
 Oxford PlantOxford Plant
 Only car production plant responsible for production of theOnly car production plant responsible for production of the
new MINInew MINI
 Spartanburg PlantSpartanburg Plant
 Builds the BMW X5, the world’s first sports activity vehicleBuilds the BMW X5, the world’s first sports activity vehicle
 Rosslyn PlantRosslyn Plant
 Builds more than 40,000 BMW 3 Series a yearBuilds more than 40,000 BMW 3 Series a year
 Goodwood PlantGoodwood Plant
 Rolls-Royce cars will be built at GoodwoodRolls-Royce cars will be built at Goodwood

13. Sales (BMW-brand)
Vehicles sold in all markets according to BMW's annual reports.
Year Total
2000 822,181
2001 880,677
2002 913,225
2003 928,151
2004 1,023,583
2005 1,126,768
2006 1,185,088
2007 1,276,793
2008 1,202,239
2009 1,068,770

14. SWOT Analysis of BMW:SWOT Analysis of BMW:
Strength Weakness
Strong Brand Image
 Perception of German
Engineering and Quality
BMW makes some of the best
engines in the world.
Strong commitment to R&D.
Established presence and
Economies of Scale in the big car
markets
Promising presence in growing
markets like India, China and Russia.
Because of its Germany Heavy
base, fixed costs and labour costs are
very high.
Productivity though improved, still
lags behind its Japanese rivals like
Lexus.
Less than perfect response to its
new design direction.

15. Opportunity Threats
Strong growth of China and India
 Consumer trend towards cleaner
and more fuel efficient high
performance engines which is a BMW
speciality.
The percentage of rich people is
growing worldwide. (Straits Times
Article)
Threat of a long recession in the USA
and Europe
Strengthening of the Euro against the
US Dollar and other currencies can
undercut its top line and affect
profitability.
Fresh and aggressive new direction
at Mercedes Benz

16. 4 P’s of BMW4 P’s of BMW
 The 1 series, 7 series and the Z4The 1 series, 7 series and the Z4
roadster are not doing too well. Theroadster are not doing too well. The
company has two star performers incompany has two star performers in
the form of the X5 SUV and the X3 minithe form of the X5 SUV and the X3 mini
SUV.SUV.
 The product list of BMW goes on & onThe product list of BMW goes on & on

17. PricePrice
 When compared with its direct competitionWhen compared with its direct competition
like Mercedes Benz, Audi and Lexus etc,like Mercedes Benz, Audi and Lexus etc,
BMW is competitively prices as all of theseBMW is competitively prices as all of these
brands position their brands at more orbrands position their brands at more or
less the same price in all the segments.less the same price in all the segments.

18. PlacePlace
 Part of BMW’s success comes from the unique way in which it getsPart of BMW’s success comes from the unique way in which it gets
cars from the factory to the consumer.cars from the factory to the consumer.
 Other automakers mass produce vehicles and ship them to local dealershipsOther automakers mass produce vehicles and ship them to local dealerships
where they sit until a buyer comes along but BMW’s unique ordering systemwhere they sit until a buyer comes along but BMW’s unique ordering system
reverses the process, allowing the customer to order a vehicle before it evenreverses the process, allowing the customer to order a vehicle before it even
exists.exists.
 Customers can visit BMW showrooms to custom order vehicles,Customers can visit BMW showrooms to custom order vehicles,
selecting from a broad range of customizable features.selecting from a broad range of customizable features.
 Once an order is placed, BMW’s manufacturing facilities go to work. While itOnce an order is placed, BMW’s manufacturing facilities go to work. While it
would be reasonable to suppose that BMW’s process significantly slows vehiclewould be reasonable to suppose that BMW’s process significantly slows vehicle
production and delivery time.production and delivery time.
 BMW has earned its reputation for producing the highest quality carBMW has earned its reputation for producing the highest quality car
with the highest level of customer service. It leads its competitorswith the highest level of customer service. It leads its competitors
when it comes to these areas.when it comes to these areas.

19. PromotionPromotion BMW pursues a bold and aggressive marketing campaign that sometimes directlyBMW pursues a bold and aggressive marketing campaign that sometimes directly
attacks competitors.attacks competitors.
 BMW has embarked on a global advertising campaign. What differentiates thisBMW has embarked on a global advertising campaign. What differentiates this
promotion is the fact that it remains consistent throughout the company’s internationalpromotion is the fact that it remains consistent throughout the company’s international
campaign across the European, USA, Asia, South Africa and the Middle East markets.campaign across the European, USA, Asia, South Africa and the Middle East markets.
In over 15 countries there will be:In over 15 countries there will be:
 TV spotsTV spots
 Print advertisementsPrint advertisements
 Mega-postersMega-posters
 Radio spotsRadio spots
 EventsEvents

20.  In all three James Bond films BMW, MGM and EONIn all three James Bond films BMW, MGM and EON
Productions Ltd worked together on a cross promotionProductions Ltd worked together on a cross promotion
project. This was accomplished worldwide with TVproject. This was accomplished worldwide with TV
commercials, print ads as well as displays in BMW dealercommercials, print ads as well as displays in BMW dealer
showrooms.showrooms.
 Its “Ultimate Driving Machine” campaign has been one ofIts “Ultimate Driving Machine” campaign has been one of
the most enduring and loved campaign in the entirethe most enduring and loved campaign in the entire
Automobile Industry HistoryAutomobile Industry History

21. Brand ValueBrand Value
Four core values, which are:Four core values, which are:
 TechnologyTechnology
 QualityQuality
 PerformancePerformance
 ExclusivityExclusivity
BMW has maintained these core values since theBMW has maintained these core values since the
company’s inception.company’s inception.

22. Segmentation and TargetSegmentation and Target
 BMW does not believe in a Geographical segmentationBMW does not believe in a Geographical segmentation
of its market. Instead BMW segments its marketof its market. Instead BMW segments its market
primarily on a Psychographic and Demographicprimarily on a Psychographic and Demographic
basis.basis. Societal values are changing rapidly.Societal values are changing rapidly.

23. PositioningPositioning
BMW has positioned itself as a luxury carBMW has positioned itself as a luxury car
maker that offers oodles of drivingmaker that offers oodles of driving
pleasure thrown in along with thepleasure thrown in along with the
luxuryluxury

24. Porters 5 force analysisPorters 5 force analysis
 Threat of New Entrants - Very LowThreat of New Entrants - Very Low
In order to enter the automotive market a huge amount of capital isIn order to enter the automotive market a huge amount of capital is
required. In addition, an entering firm would need to have arequired. In addition, an entering firm would need to have a
tremendous amount of tacit and explicit knowledge to design andtremendous amount of tacit and explicit knowledge to design and
manufacture products.manufacture products.
 Threat of Substitutes - MediumThreat of Substitutes - Medium
Available substitutes include public transportation such as buses,Available substitutes include public transportation such as buses,
trains, boats, and aircraft. In addition, consumers can use othertrains, boats, and aircraft. In addition, consumers can use other
conventional means of transportation such as bicycling or walking.conventional means of transportation such as bicycling or walking.
 Power of Suppliers – MediumPower of Suppliers – Medium
In this market and therefore, the majority of suppliers to majorIn this market and therefore, the majority of suppliers to major
automotive makers are medium to large businesses. As a resultautomotive makers are medium to large businesses. As a result
they have some flex in determining product pricing, delivery, andthey have some flex in determining product pricing, delivery, and
distribution.distribution.

25.  Power of Buyers - MediumPower of Buyers - Medium
While buyers are individuals and are not grouped together,While buyers are individuals and are not grouped together,
they still have an immense amount of information available tothey still have an immense amount of information available to
them regarding the pricing and cost to manufacture a BMW.them regarding the pricing and cost to manufacture a BMW.
As a result, buyers do have some leverage in being able toAs a result, buyers do have some leverage in being able to
negotiate a purchasing price from BMW.negotiate a purchasing price from BMW.
 Competitive Rivalry - Extremely HighCompetitive Rivalry - Extremely High
Any competitor in this market is generally a global companyAny competitor in this market is generally a global company
with billions of dollars in assets and can compete on any levelwith billions of dollars in assets and can compete on any level
that BMW can.that BMW can.

26. 5 C’s5 C’s
 ConvenienceConvenience
BMW doesn’t have online purchase systems but due to the highBMW doesn’t have online purchase systems but due to the high
price of their products BUT they have an online test driveprice of their products BUT they have an online test drive
appointment system for the 7series using which doesn’t need toappointment system for the 7series using which doesn’t need to
go to the store to test drive the car, hence making it morego to the store to test drive the car, hence making it more
convenient.convenient.
 CommunicationCommunication
BMW has 24hour hotline numbers to help in communicationBMW has 24hour hotline numbers to help in communication
with the company exclusively for certain model customers. Theywith the company exclusively for certain model customers. They
have a website for online communication . They believe inhave a website for online communication . They believe in
listening to customers when they are “with” you.listening to customers when they are “with” you.

27.  Customer solutionCustomer solution
BMW strives hard to find out what their customers needs are andBMW strives hard to find out what their customers needs are and
works hard towards fulfilling them .They believe that it is important toworks hard towards fulfilling them .They believe that it is important to
satisfy customer needs to keep customers happy and satisfied.satisfy customer needs to keep customers happy and satisfied.
 Customer costCustomer cost
BMW also realizes that all the costs taken to design their cars areBMW also realizes that all the costs taken to design their cars are
also to be included in the cost of the car. They have retailers sellingalso to be included in the cost of the car. They have retailers selling
their cars in different regions/countries at different prices based ontheir cars in different regions/countries at different prices based on
the acceptable customer cost for that region.the acceptable customer cost for that region.

30.  Mr. Charles Stewart Rolls and Sir. Henry RoyceMr. Charles Stewart Rolls and Sir. Henry Royce
 ROLLS ROYCE PLC-1906ROLLS ROYCE PLC-1906
 Holding company to ROLLS ROYCE PLC 2003Holding company to ROLLS ROYCE PLC 2003
 AeroenginesAeroengines
 ROLLS ROYCE LIMITEDROLLS ROYCE LIMITED
 ROLLS ROYCE MOTORSROLLS ROYCE MOTORS
 1998 VW1998 VW
 1998 the name and logo was retained by BMW1998 the name and logo was retained by BMW
 2002 Complete subsidary to BMW2002 Complete subsidary to BMW

31.  19591959
 British Motor corporationsBritish Motor corporations
 MORRIS MINI MANOR & AUSTIN SEVENMORRIS MINI MANOR & AUSTIN SEVEN
Supplied Sweden army rifles
Jumped to motorcycles
1920 engine manufacturing factory
July 2007 BMW bought for 93 million

33. K seriesK series
 BMW globally launched a radicallyBMW globally launched a radically
redesigned K Series motorcycle, theredesigned K Series motorcycle, the
K1200S.K1200S.
 Designed as a Super Sport motorcycleDesigned as a Super Sport motorcycle

34.  R seriesR series
 F seriesF series
 G seriesG series
 HP2 SeriesHP2 Series

36.  BMW bought Swiss team Sauber in JuneBMW bought Swiss team Sauber in June
2005 to form the BMW Sauber F1 Team.2005 to form the BMW Sauber F1 Team.
 Debut : 2006 Bahrain Grand PrixDebut : 2006 Bahrain Grand Prix

37. BMW was an engine supplier to Williams,BMW was an engine supplier to Williams,
Benetton, Brabham, and Arrows. NotableBenetton, Brabham, and Arrows. Notable
drivers who have started their Formuladrivers who have started their Formula
One careers with BMW include JensonOne careers with BMW include Jenson
Button, Juan Pablo Montoya, RobertButton, Juan Pablo Montoya, Robert
Kubica and Sebastian Vettel.Kubica and Sebastian Vettel.

38. BMW and Toyota SignBMW and Toyota Sign
Agreement:Agreement:
 Aimed at developing new products andAimed at developing new products and
advanced-power train technologies.advanced-power train technologies.
I believe BMW’s strength is in developingI believe BMW’s strength is in developing
sports cars,” Mr. Toyoda said. “I get sosports cars,” Mr. Toyoda said. “I get so
excited thinking about the cars that willexcited thinking about the cars that will
result from this relationship.”result from this relationship.”
www.nytimes.com

39. Financial Report as ofFinancial Report as of
30 June 201230 June 2012
 The BMW Group sold more cars than ever before in theThe BMW Group sold more cars than ever before in the
second quarter and during the first six months of 2012second quarter and during the first six months of 2012
 Once againOnce again underlining its excellent state of healthunderlining its excellent state of health..

40. Comparison With Other BrandsComparison With Other Brands
The top ten automotive brands for 2012 in order and value (in billions)The top ten automotive brands for 2012 in order and value (in billions)
are as follows:are as follows:
 BMW $24.62BMW $24.62
 Toyota $21.78Toyota $21.78
 Mercedes $16.11Mercedes $16.11
 Honda $12.65Honda $12.65
 Nissan $9.85Nissan $9.85
 Volkswagen $8.52Volkswagen $8.52
 Ford $7.03Ford $7.03
 Audi $4.70Audi $4.70
 Hyundai $3.60Hyundai $3.60
 Lexus $3.39Lexus $3.39

42. With a total of 475,011 BMW, MINI and Rolls-RoyceWith a total of 475,011 BMW, MINI and Rolls-Royce
brand cars sold in the second quarter (+ 5.4 %) andbrand cars sold in the second quarter (+ 5.4 %) and
900,539 in the first half of the year (+ 8.1 %), the BMW900,539 in the first half of the year (+ 8.1 %), the BMW
Group again asserted its undisputed position as theGroup again asserted its undisputed position as the
world's leading manufacturer of premium vehicles.world's leading manufacturer of premium vehicles.

43. ““New product Development”New product Development”

45.  ArgentinaArgentina
 CanadaCanada
 FranceFrance
 GermanyGermany
 IrelandIreland
 ItalyItaly
 JapanJapan
 SpainSpain
 United KingdomUnited Kingdom
 United StatesUnited States

46. Strength Weakness
Countries Privatizing Railways
Technology Availability
Strong R&D
Promising Presence in other
segments like Aircrafts, cars,
Motorbikes
New to the sector
High Labor and Fixed costs.
Opportunity Threat
New improved Technology
Capable of getting new government
dealers
Threat of a long recession in the USA
and Europe
Chinese and Japanese
manufacturers

48. Facebook fansFacebook fans
 Almost 10 million fans of BMW.Almost 10 million fans of BMW.
 Around 3 million fans of MINI.Around 3 million fans of MINI.
 Almost half a million fans of Rolls-Royce.Almost half a million fans of Rolls-Royce.
No other car company on the socialNo other car company on the social
networks has as many fans. We leadnetworks has as many fans. We lead
the way here too, because we act withthe way here too, because we act with
foresight.foresight.

49. Long – Term GoalsLong – Term Goals
 In 2016, BMW will be 100 years old and we aimIn 2016, BMW will be 100 years old and we aim
to sell two million cars then.to sell two million cars then.
 Our vision for the year 2020 is: to be the leadingOur vision for the year 2020 is: to be the leading
provider of premium products and premiumprovider of premium products and premium
services for individual mobility.services for individual mobility.

50. Brand AmbassadorBrand Ambassador

51. Sachin BMW
Forbes 78 highest paid Forbes 61raking in global
companies
Twitter 9L Twitter 8 lakhs
Face book likes 75 lakhs 1Cr likes
No 1 batsman in the world No 1 engine in the world
Power & strength Power & strength

52. Your trust is our driving forceYour trust is our driving force

53. SourcesSources
 www.bmw.comwww.bmw.com
 www.bmwblog.comwww.bmwblog.com
 www.forbes.comwww.forbes.com
 www.nytimes.comwww.nytimes.com